TMI Blog2018 (2) TMI 1437X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods. Clandestine clearance being a very serious charge, the department is duty bound to establish the same with reliable evidence. Appeal dismissed - decided against Revenue. - Appeal No. E/278/2010 - Final Order No. 40405/2018 - Dated:- 9-2-2018 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S Govindarajan, AC (AR) For the Appellant Shri M.A.Mudimannan, Advocate For the Respondent ORDER Per Bench Brief facts are that the Officers of the Preventive Unit conducted search in the office factory premises of the respondent on 13.12.2005 and recovered certain documents and a mahazar was drawn up on the same day. Certain loose papers were recovered from the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.2006 stated that certain quantity of scrap consumed were not taken into account in records. Thus both Director and General Manager have admitted correctness of the details found in the private records the Miscellaneous . He relied upon the decision in the case of Columbia Electronics Ltd 2002 (143) ELT 635 (Tri.-Del) and argued that in clandestine cases, the Revenue is not required to prove the case with mathematical precision. 3. On behalf of respondent, the Ld.Counsel, Sh.M.A.Mudimannan, made submissions supporting the impugned order which is summarized as under : i. The entire case of the department is based on assumptions and presumptions. The entire demand is based on private documents. The department has not been able to find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is details contained loose sheets, a private document Daily inward/outward material report . The case of the department is that Sh.M.Seetharama Reddy, General Manager has admitted that production reports dt.13.8.2005, 14.8.2005, 17.8.2005 shown in these private records, regarding description, opening stock, production, despatches, closing stock and cumulative production and despatches are true and correct. That these figures do not tally with the figures in statutory records and that therefore the respondent has clandestinely removed finished products evading duty. The details in private record pertains to the month of August. Department officers visited the premises in December. The investigation continued for another two years as seen fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O of the company and other two personnel of the appellants. In this case, the entire charge rests on the private records recovered from the appellants. The private record showing production details without corroborative evidence of corresponding raw material or excess disposal is not sufficient to prove clandestine removal. Consumption of electricity, purchase of excess raw material, evidence of purchase of unaccounted goods by buyers etc., normally establish clandestine production and removal. During the visit of the officers, no discrepancy in the stock of finished products and raw materials were noticed. There is no evidence to prove the allegation against the appellants that the receipt of raw material was not accounted in order to supp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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